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Service tax liability

Queries 350 views 1 replies

kamal

Others

24 Points Joined June 2015

sir/ma'am,

we are into slitting of CRNO/CRCA steel coils , the material being sent by our customers.

we do slitting jobwork for them.and charge our labourcharges for the same.

all our customers are under excise.are we liable to pay service tax.

and there are few customers who are not under excise.and to such customers is there any limit .

and we are registered under SSI.

please clarify.

regards,

KAMAL.K

Replies (1)

If your customers are registered under Excise you are eligible for exemption from payment of excise duty. However if your customers are not registered under excise then you have to charge service tax on your labour charges. But even in case of such customer you can claim exemption up to Rs. 10 lakh. After your labour charges exceed 10 lakh you have to charge & collect service tax on each bill raised on non-excise registered dealers